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To: Vince Moretto who wrote (91752)	12/12/2002 12:27:54 PM
From: long-gone	Respond to of 116815

Silver up too.

To: Vince Moretto who wrote (91752)	12/12/2002 12:34:59 PM
From: long-gone	Respond to of 116815

Press Release Source: Fitch Ratings Greater Need For Transparency Of Credit Derivative Sellers Thursday December 12, 8:27 am ET Fitch Announces Survey NEW YORK--(BUSINESS WIRE)--Dec. 12, 2002--Over the past two years more than $225 billion of U.S. and European debt has defaulted, more than double the amount of all defaulting debt from 1980 to 1999. Despite these record defaults, banks have generally maintained good overall loan quality. An oft-cited reason for this good performance is their use of credit derivatives, collateralized debt obligations (CDOs) and other financial tools to hedge risk. Given the importance of the burgeoning market for credit derivatives, which grew from virtually nothing in 1997 to $2 trillion by year-end (and is expected to rise to $4.8 trillion by 2004), Fitch Ratings is conducting a survey of banks, insurance/monolines/reinsurance and securities firms to improve overall transparency and provide greater clarity as to who the sellers of credit protection have been. "We share the view that growth of this market generally should prove beneficial for the global financial system by promoting greater diffusion of risk. Credit derivatives have enhanced the ability to transfer credit risk throughout the market, thereby fostering greater efficiency and diversification," said Robert Grossman, Chief Credit Officer, Fitch Ratings. "The rapid growth, lack of transparency and relative immaturity of the market, however, warrants closer review, particularly for unanticipated concentrations of credit risk." While Fitch has identified some notable losses - for example, fifteen CDOs were placed on Rating Watch Negative due to WorldCom exposure - other unidentified exposures certainly remain. While Fitch expects that the vast majority of losses will prove to have been broadly diversified, it is likely that some unanticipated concentrations of credit risk will be found among certain market participants. The objective of the survey, which will be in the form of a targeted questionnaire, will be to achieve a better understanding of institutions' total net credit derivative exposure. Fitch will be focusing on 'sellers' of credit derivatives, namely those who provide protection against credit losses, particularly through the use of single name credit default swaps and investments in CDOs. "Although banks are the most active participants in the overall credit derivative sector, hedge funds are also becoming a meaningful part of the buyer's market, and insurance/monolines/reinsurance companies have rapidly emerged as key players in the sellers market," said Grossman. This survey is part of a continuing effort to capture risks associated with participation in the credit derivatives market. Subsequent efforts will focus on, among other things, the operational risk and basis risk of broker dealers and the management of counterparty risks by protection buyers. In an attempt to improve disclosure in this relatively opaque market, Fitch intends to publish the results of its market survey and other research on a macro basis. Further, it is possible that selective rating actions may be appropriate in certain instances. -------------------------------------------------------------------------------- Contact: Fitch Ratings Charles Prescott, + 44 (0)20 7417 4306 (Global Banks and Insurance) Andrew Jackson, + 44 (0)20 7417 6270 (CDOs/Credit Derivatives) Mathew Cottrell, + 44 (0)20 7417 4215 (Credit Policy Group) Robert Grossman, 212/908-0535 (Chief Credit Officer) Roger Merritt, 212/908-0636 (Credit Policy Group) Greg Stofega, 212/908-0526 (Financial Guarantors) Jim Moss, 312/368-3213 (Banks and Securities Firms) Julie Burke, 312/368-3158 (Insurance/Reinsurance) James Jockle, 212/908-0547 (Media Relations) biz.yahoo.com